Preferred risk policies with reduced premiums are issued by insurance companies because the insured has

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has 




a) a higher face amount than average
b) a better ability to pay premiums over a long period of time
c) worse than average mortality or morbidity experience
d) better than average mortality or morbidity experience


Answer: d) better than average mortality or morbidity experience

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